The project yields nominal returns

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A project costs $1500 immediately. The project yields nominal returns of $200 in years 1 and 2, $250 in years 3 and 4, and $300 in year 5. In addition, the project will have capital worth $600 (in nominal $) left over at the end of year 5. The real discount rate is 4% and the expected inflation rate is 3.5%. What is the NPV of this project?

Reference no: EM131446204

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The project yields nominal returns : A project costs $1500 immediately. The project yields nominal returns of $200 in years 1 and 2, $250 in years 3 and 4, and $300 in year 5. In addition, the project will have capital worth $600 (in nominal $) left over at the end of year 5. The real d..

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